Business Plan Templates Projections_2

PLANNING THEORY WHY PLAN? Many people will say that planning is unnecessary and that they get by without it. This may be fine in some circumstances, but where the environment is complex it will result in failure. Possible Overkill (navel gazing) Muddle through Success Failure Low Environmental complexity High 21 PLANNING THEORY KNOW YOUR AUDIENCE Plans are produced for several different reasons and for different people. Each organisation has needs that are unique to it, as well as a unique set of stakeholders (those who have an interest in the outcomes of its operations). The major stakeholders can include some or all of: Shareholders Lenders Creditors Potential investors Government (tax) The Community, in some cases 22 PLANNING THEORY KNOW YOUR AUDIENCE Planner Sole trader Partnership Small company Department/unit in an organisation Audience includes: Bank manager, creditors, taxman, auditors Fellow partners, staff, bank managers, creditors, professional body, taxman, auditors Directors, creditors, staff, bank manager, taxman, auditors Head of department/unit, other departments/units, superiors, auditors, group planning, accounts department 23 PLANNING THEORY ELEMENTS OF A PLAN There is no magic formula for the contents of a plan and, whilst there are some key items that must be present, levels of details will differ with organisational needs. Essential elements include: Internal situation analysis of your organisation/division/department/unit External analysis of your market and competition Product and service offerings description Targets going forward A budget for expenditure and resources Economic forecasts ‘What if?’ analysis These elements demonstrate adequate research, analysis and thought in preparing the plan. 24 PLANNING THEORY PLANNING STYLES Planning styles differ from organisation to organisation. Example styles include: Top-down where the initial plan is set centrally Bottom-up where contributions are aggregated in stages A blend of these two where guidelines are set centrally along with macro-economic analysis, and units are allowed to prepare their own plans within this framework Informal planning Numbers based (traditional) Scenario based Economic Value Analysis Balanced scorecard 25 ... - tailieumienphi.vn